Tax Court Decision by Judge Gerber: Julie Leigh Domeny v. Commissioner

The United States Tax Court has issued a memorandum opinion, Julie Leigh Domeny v. Commissioner, by Judge Joel Gerber.  The Tax Court held that a portion of a payment that an individual received from a former employer in a settlement agreement was compensation for physical illness, an intensification of her multiple sclerosis systems, caused by problems in her work environment, and therefore is excluded from gross income under section 104(a)(2).

Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.